. . REPORT. . 


TD 225 
. P7 A4 
1894 
Copy 1 


ON THE 

Water Committee 


OF THE 


CITY OF PORTLAND, OTCEGOlT 

. . BY THE • • 


Committee on Other Commissions 


TO THE 


Committee of One Hundred. 


EQRTLANT), ^OREGON : 

F. W. BALTES 'AND. COMPANY', PRINTERS,,. 

1894 . - ' 





/ 


Report on the Water Committee 

OF THE 

City of Portland, 

BY THE 

COMMITTEE ON OTHER COMMISSIONS 

TO THE 

COMMITTEE OF ONE HUNDRED. 


To the Executive Committee of the Committee of 
One Hundred : 

Gentlemen—Y our committee beg leave to present 
this as their report on the Water Committee, and 
while it may not be as full as desired, or go into details 
to the extent some might wish, we hope that the report 
in general will serve a useful purpose in placing before 
the public a statement of the work done by the Water 
Committee. 

The subject naturally divides itself into several heads : 

(1) The creation of the committee and the law 
under which it exists. 

( 2 ) Finance. 

(3) Operation. 

(4 ) Construction. 

THE CREATION OF THE COMMITTEE, ETC. 



The supplying of water for the City of Portland 
prior to the purchase of the plant by the city was done 
by the Portland Water Company, a private corporation. 
For some time there had been more or less agitation of 
the question of the desirability of the city owning its 




2 


'own plant. This sentiment was finally crystalized into 
a law at a special session of the legislature in the year 
1885. 

On November 25, 1885, by an Act Amending an Act 
incorporating the City of Portland, approved October 
24, 1882, the City of Portland was authorized and 
empowered to construct or purchase, keep, conduct and 
maintain water works therein, of a character and 
capacity sufficient to furnish the city and the inhabi¬ 
tants thereof with an abundance of good, pure and 
wholesome water for all uses and purposes necessary for 
the comfort and convenience and well-being of the 
same, and to that end might acquire by purchase, or 
•otherwise, and own and possess such real and personal 
property within and without the limits of the city as in 
the judgment of the persons therein authorized to con¬ 
struct, purchase, conduct and maintain the same, might 
be deemed necessary and convenient, and for such pur¬ 
pose might also issue bonds and dispose of the same as 
therein provided. 

The power and authority given the city by the pre¬ 
ceding section was delegated to the following named tax¬ 
payers and bona fide residents of the city, namely : 
John Gates, F. C. Smith, C. H. Lewis, Henry Failing, 
W. S. Ladd, Frank Dekuin, L. Fleischner, H. W. Cor- 
~bett, W. K. Smith, J. Loewenberg, S. G. Reed, R. B. 
Knapp, L. Therkelson, Thomas M. Richardson and A. 
H. Johnson, who were to be styled collectively “ The 
Wa t^r Committee.” This committee was compelled to 
organize within thirty days from the time the Act went 
into effect by the election of a presiding officer from 
their number who was to be styled “ The Chairman of 
the Committee,” and a clerk who was to be styled “ The 
Clerk of the Committee.” 

By Section 145 of this Act, the committee were 
authorized to fill any vacancy that might occur in their 
.body by death, resignation, removal from the city, or 

U * S - ^Pt. Labo-. 

25 0. ’ 0ft / 


3 


otherwise, by the appointment of a person to be a mem¬ 
ber thereof, who is a bona fide resident and taxpayer of 
the city. Nine of the committee constituted a quorum 
for the purpose of organization as well as the transac¬ 
tion of all other business. The committee were also 
directed to appoint a treasurer who should give a bond 
in such sum as might be required, and money was to be 
paid out on the order of the chairman, countersigned by 
the clerk of the committee, and not otherwise. The 
committee could also provide a compensation for the 
clerk and treasurer. They were also required to meet 
at least once a month for the transaction of business. 

Under Section 153 the committee was authorized to 
issue and dispose of the bonds of the city of the 
denomination of from $100 to $1,000, as the purchaser 
might desire, with interest coupons attached, the par 
value of which should not exceed the sum of $700,- 
000. These bonds were to run thirty years, and were 
payable in gold coin of the United States, with interest 
at the rate of five per cent, per annum, payable half- 
yearly. 

Section 154 provides that as soon as the water works 
were ready for use, that there should be selected five 
persons for the purpose of maintaining and conducting 
said water works, who shall be styled individually, 

1 ‘ Water Commissioners,” and collectively “The Water 
Commission,” and the power and authority given the 
city by the Act was afterwards to be exercised by this 
commission. The commissioners are to be selected in 
the first instance by the committee from their own 
number for the several terms of two, four, six, eight 
and ten years. In case a sufficient number do not con¬ 
sent to serve as such commissioners, the remainder 
might be selected from the resident taxpayers of the 
city, and thereafter the commissioners were to- be 
appointed by the Governor of the state from such tax¬ 
payers for terms of ten years, unless it was for the 


4 


filling of a vacancy, when such vacancy would be filled 
until the expiration of the term. Three of these, com¬ 
missioners constitute a quorum for the transaction of 
business. They are also to elect a chairman and a 
clerk to have the same powers and the same duties as 
the chairman and the clerk of the committee. Provision 
is made also for their meeting once a month. 

After this commission is elected and organized, then 
the Water Committee is required to turn over the water 
works and all property, books, papers and accounts con¬ 
nected therewith or appertaining thereto. The commis¬ 
sion then take possession and charge of, and manage, 
conduct and maintain the same. They have authority 
to alter, improve and extend the work from time to 
time, when the receipts from the works are sufficient to 
defray the expenses thereof, as the growth of the city 
and the wants and convenience of the inhabitants 
thereof may require. The committee may turn over 
the completed portion or portions of such work to the 
commission before the final completion thereof, and as 
fast as it is so turned over to the commission it must 
accept the same and conduct and maintain it accord¬ 
ingly. The money collected or received by the com¬ 
mission for the use or consumption of water shall be 
deposited with the treasurer of the city who shall keep 
the same separate and apart from the other funds of the 
city, paying it out on the order of the chairman of the 
commission, countersigned by the clerk, and to the holder 
of any overdue interest coupons of the bonds aforesaid, 
upon the presentation and surrender thereof, and not 
otherwise. 

Section 159 gives the commission full power to man¬ 
age, control and handle the water works. 

Section 160 provides that annually, before the first 
day of January of each year, the commission shall make 
a written estimate of the probable , expense of main¬ 
taining and conducting the water works during the 


5 


ensuing year, and also the cost of any contemplated 
alteration, etc., and thereupon ascertain and prescribe, 
as nearly as it conveniently can, a water rate for such 
year as will insure a sufficient income from the sale of 
water to pay such expenses and costs, together with 
one year*s interest on the bonds then issued and out¬ 
standing. 

Section 161 provides that after the expiration of 
five years from the selection of the commission, a sum 
equal to one per centum on the par value of the bonds, 
then issued and outstanding, may be annually estimated 
for in fixing the water rates in addition to the expenses, 
costs and interest, and collected as a part thereof, which 
sum, when so collected, shall be kept invested under 
the direction of the commission as a sinking fund for 
the payment' and redemption of the said bonds. 

Section 162 provides for filing the quarterly state¬ 
ment of receipts and disbursements with the city audi¬ 
tor and clerk, and the preservation and publication of 
the same, and also, as part of its last quarterly report of 
each year, an inventory or statement of the property, 
implements or material in its possession or control 
appertaining to the water works, together with its con¬ 
dition and proximate value. 

Section 163 provides for the salary of the five com¬ 
missioners, which shall be $500 a year, payable quar¬ 
terly. 

Section 164 defines the elegibility of persons to 
become members, and defines a taxpayer within the 
meaning of the Act to be one who pays a tax of not less 
than $25 per year, and whenever any member of the 
committee or commission shall fail to pay such tax to 
the city for one year, he shall cease to be a member 
thereof and his place shall be deemed vacant and may 
be filled accordingly. 

Section 165 exempts from taxation the bonds issued 
under this Act. 


6 


The first change made in the original Act was on Feb¬ 
ruary 11, 1891. 

Under this Act, filed in the office of the Secretary of 
State, February 11, 1891, the Water Committee of the 
City of Portland were authorized to bring the water of 
Bull Run, its branches and tributaries, by gravity to 
Portland in sufficient quantity to supply the city and 
inhabitants thereof, as well as the places and people 
along or in the vicinity of the line of the pipes, conduit 
or aqueducts that may be constructed or used for such 
purpose. Section 2 of this Act provided that for the 
purpose of carrying the Act into effect the committee 
were authorized to issue and dispose of, from time to 
time, bonds in addition to those authorized by Section 
153 of the Act of 1885, of the value of $2,500,000, 
which bonds in all particulars except as to exemption 
from taxation, shall conform to and have the same 
force and effect as those authorized by said Act of 1885, 
and shall be designated as the issue of 1891. Section 
3 provided that the payment of the interest on the bonds 
issued under this Act, as well as the Act of 1885, which 
might become due during the construction of the water 
works provided for and within one year after the com¬ 
pletion and delivery to the water commission, might be 
met out of the proceeds of the sale of said bonds and 
during the construction and until such delivery the 
committee shall have the power and authority conferred 
on such commission by Section 159 of the Act of 1885. 

Section 161 of the Act of 1885, was amended so 
that after the expiration of five years from the selection 
of said commission, a sum not exceeding two per cent, 
of the par value of the bonds issued under this Act and 
the Act of 1885, then outstanding, may be estimated 
for in fixing the water rate in addition to the expense, 
cost and interest to be collected as a part thereof. This 
sum when collected shall constitute a sinking fund to be 
used and applied under the direction of the commission_ 


7 


First: To the purchase of any valid bonds or 
indebtedness issued by, or due from, the city. 

Second: To the purchase of any of the bonds 
issued under the Act of 1885, or this Act, at a pre¬ 
mium not to exceed ten per cent., or, 

Third : To the payment and reduction of such of 
the bonds issued under this Act as may be selected by 
lot on the first day of January of any year, at a premium 
not to exceed ten per cent. Further, providing, that all 
bonds purchased and redeemed under the second and 
third sub-divisions of this section shall be forthwith 
cancelled and deposited with the auditor of the city. 

On April 27, 1888, John Gates died, and on October 
8, 1889, F. C. Smith resigned. On November 5, 
1889, the committee filled these vacancies by the elec¬ 
tion of C. A. Dolph and C. E. Sitton. Mr. Sitton died 
in 1890. 

Further changes were made in the law in 1891, as 
follows : 

Under an Act filed in the office of the Secretary of 
State, February 19, 1891, being the Act creating the 
consolidated City of Portland, East Portland and Albina, 
Chapter 12, treats of the question of water works.. 
Section 143 is practically the same as Section 142 of 
the original Act. 

Section 144 is practically the same as 143, except 
that the following persons are named as the committee : 
Geo. P. Frank, C. H. Lewis, Henry Failing, W. S. 
Ladd, Frank Dekum, L. Fleischner, H. W. Corbett, 
W. K. Smith, J. Loewenberg, S. G. Reed, R. B. Knapp, 
L. Therkelson, Thomas M. Richardson, A. H. John¬ 
son, C. H. Hill, C. A. Dolph and C. H. Raffety. Mr. 
Raffety and Mr. Hill were named with the proviso that 
if the Act be rejected by the City of East Portland, Mr. 
Raffety was not to be a member, and that if the Act be 
rejected by the City of Albina, Mr. Hill was not to be a 
member. 


8 


Section 145 is practically identical with Section 144 
of the old Act. 

Section 146 provides that the committee shall fill the 
first three vacancies that may occur in the body by the 
appointment of three persons to be members theieof 
who are bona fide residents and taxpayers of the city 
east of the Willamette river. 

Sections 147, 148, 149, 150, 151, 152 and 153 are 
practically the same as the sections of the Act of 1885, 
from 146 to 152, inclusive. 

Section 154 of the Act of 1891, provides for the 
issuance and disposition of bonds of the denomination 
of from $100 to $1,000, payable in thirty years from 
the date, in gold coin, with interest at the rate of five 
per cent, per annum, payable semi-annually, provided 
that the whole amount of bonds issued by such com¬ 
mittee shall never exceed the sum of $3,500,000, 
including the amount which shall have been issued by 
the present Water Committee of the City of Portland 
at the time the Act shall take effect. 

Section 155 is the same as 154. 

Section 156 of the new Act provides that the com¬ 
missioners shall be selected in the first instance by the 
committee from their own number for the several terms 
of two, four, six, eight and ten years, but in case a 
sufficient number thereof do not consent to serve as such 
commissioners, the remainder may be selected from the 
resident taxpayers elected from the qualified voters of 
the city. 

Sections 157, 158, 159, 160 and 161 are practically 
the same as the old law from Section 156 to 160 inclu¬ 
sive. 

Section 162 provides that after the expiration of five 
years from the selection of said commission, a sum not 
exceeding two per centum of the par value of the bonds 
issued under this Act and under the Act of 1885, which 
created the Water Committee of the City of Portland, 


9 


then outstanding, may be annually estimated for in fix¬ 
ing the water rate in addition to the expense, cost and 
interest aforesaid, and be collected as a part thereof, 
which sum, when so collected, shall constitute a sink¬ 
ing fund to be used and applied under the direction of 
said commission— 

First : In the purchase, of any valid bonds issued 
by,, or due from, the city. 

Second : To the purchase of any bonds issued under 
the Act of 1885, or this Act, at a premium not to exceed 
ten per cent. 

Third: To the payment and. redemption of all such 
of the bonds issued under this Act as may be selected by 
lot on the first day of January .of any year at a pre¬ 
mium not to exceed ten per centum. 

All bonds purchased or redeemed under the second 
and third sub-divisions of. this section shall be forthwith 
cancelled and deposited with the auditor of the city. 

Sections 163, 164 and 165 are practically the same 
as Sections 162, 163 and 164. 

Section 166 provides that all bonds issued and dis¬ 
posed of under this Act shall be subject to taxation. 

By an Act filed in the office of the Secretary of State, 
February 23, 1893, the charter of the City of Portland 
was again changed, and under Chapter 12 the subject of 
water works was treated. 

Section 145 is the same as 143 of the law of 1891. 

Section 146 creates the following as the committee : 
Geo. P. Frank, C. H. Lewis, Henry Failing, Frank 
Dekum, I v . Fleischner, H. W. Corbett, Charles H. 
Carey, J. Loewenberg, S. G. Reed, R. B. Knapp, L. 
Therkelson, H. W. Scott, A. H. Johnson, C. H. Hill, 
C. A. Dolph and C. H. Raffetv. 

The next section which makes any material change 
is Section 155, which provides for the issuance of the 
bonds, payable in thirty years, with five per cent, inter¬ 
est, semi-annually, in gold coin, limiting the amount to 


10 


$3,200,000 including the amount which shall have 
been issued by the present Water Committee of the City 
of Portland at the time this Act takes effect. 

Section 166 makes a residence qualification necessary 
for eligibility as a commissioner, the time being fixed at 
five years. 

The rest of the law is practically the same. 

Of the committee above named, W. S. Ladd died 
on January 6, 1893 ; A. H. Johnson, April 16, 1894, 
and Frank Dekum, October, 19, 1894. The vacancies 
thus created have never been filled. 

The following named persons have been the officers 
of the committee since its organization : 

Chairman : Henry Failing. 

Treasurer: C. H. Lewis. 

Clerk : Philip C. Schuyler, until his death in 
October, 1889. On November 5, 1889, Frank T. 
Dodge, the accountant of the City Water Works office, 
was elected as clerk, and has since that time performed 
the duties of both offices. 

The treasurer is required to give a bond in the 
amount of $300,000, and the clerk $10,000. 

- A sub-committee has particular charge of the con¬ 
struction. Until his death W. S. Ladd was chairman 
of this committee, and on his death Mr. Frank was 
appointed to fill the vacancy. The following have 
been members of this committee : W. S. Ladd, Henry 
Failing, T. M. Richardson, W. K. Smith, J. Loewen- 
berg, Frank Dekum and Geo. P. Frank. The present 
members are : Geo. P. Frank, Henry Failing, J. 
Loewenberg, C. A. Dolph and L. Therkelson. 

While it is a little out of order, we will set out here 
the regulations regarding the employment of engineers, 
superintendents and laborers. 

The engineers and superintendents of concrete and 
asphalt work were employed by the committee direct 


11 


It also fixes all wages. The foremen and laborers are 
employed and discharged by the chief engineer. 

The following persons constitute the engineer corps : 


Isaac W. Smith, Chief Engineer. Appointed 

January 1, 1887. Salary, per month.$400.00 

D. D. Clarke, Principal Assistant Engineer. 

Salary, per month. 200.00. 


James D. Schuyler, Consulting Engineer Res¬ 
ervoir Construction. Salary, $5,000 for six 
months’ services during the year 1894, and 
$2,000 for services until completion of the res¬ 
ervoirs now being constructed, and for prepar¬ 
ing plans and estimates for the Portland Heights 

reservoirs. . 

C. E. Oliver, Assistant Engineeer Reservoir 


Construction. Salary, per month. 150.00 

J. Q. Jamieson, Assistant Engineer. Salary, 

per month. 125.00 

J. F. Case, Assistant Engineer. Salary, per 

month. 125.00 

Emery Oliver, Assistant Engineer. Salary, 

per month. 125.00 

E. E. Cooper, Assistant Engineer. Salary, per 

month. 125.00 

F. H. Young, Assistant Engineer. Salary, per 

month. 100.00 


CONSTRUCTION. 

R. Keating, Superintendent of Concrete Work , 

per day .$7.50 

J. S. Jackson, Superintendent of Asphalt Work , 

per day . 7.50 

J. H. Atkinson, Foreman of Carpenters , per day. 4.00 

PAY OP MEN. 


Carpenters, per day.$3.00 

Asphalt laborers, per day. 2.00 

Bricklayers, per day. 2.35 

Brick laborers, per day.*. 2.00 

Concrete finishers, per day. ... 3.00 

Concrete laborers, per day. 2.00 

Common laborers, per day. 1.75 

Two-horse wagon and driver, per day. 4.50 

Water boys, per day. 1-00 























12 


The foregoing - covers generally the formation and 
government of the committee, so far as its ministerial 
work is concerned. Necessarily, the various parts of 
the work are all a part of a harmonious whole, and our 
division is arbitrary and for convenience hereafter, 
should information be desired on any particular portion 
of the subject. 


FINANCES. 

This subject will be divided into two heads — Bonds 
and receipts from sales of water. 

BONDS. 

By the Act of 1885, the issuance of bonds to the 
amount of $700,000 was authorized. These were noil- 
taxable. The Act of 1893 authorized $2,500,000 addi¬ 
tional, and were not exempt from taxation. All of 
these are thirty-year five per cent, gold bonds, with 
interest payable semi-annually. Of these, bonds have 
been issued, dated and maturing as follows : 

January 1, 1887, maturing January 1, 1917.$ 700,000 

July 1, 1893, maturing July 1, 1923. 1,900,000 

$2,600,000 

All bonds were sold by public bidding after due 
advertisement in both local and eastern papers. Of the 
series July 1, 1893, there remains unsold $600,000, 
which we are informed will yield sufficient money to 
complete the work, and it is possible the full amount 
will not be required. We feel, therefore, safe in say¬ 
ing, as we are advised, that there will be no necessity 
for any further issue of bonds than those now author¬ 
ized. 

The dates on which bonds were sold, their face value, 
premium, discount, etc., is set out in the following 
table : 




13 


DATE. 

FACEVALUE| 

PREMIUM. 

DISCT. 

TOT’E REALIZ’D 

Dec. 31, ’86 

$500,000 

$39,300.00 


$539,300.00 

Jan. 17, ’89 

100,000 

5,908.20 


105,908.20 

Jan. 2, ’90 

50,000 

4,500.00 


54,500.00 

June 16, ’90 

50,000 

5,250.00 


55,250.00 

July 20, ’93 

50,000 


par 

50,000.00 

Aug. 7, ’93 

15,000 


par 

15,000.00 

Aug. 12, ’93 

50,000 


par 

50,000.00 

Aug. 23, ’93 

15,000 


par 

15,000.00 

Aug. 30, ’93 

1,000 


par 

1,000.00 

Aug. 31, ’93 

7,000 


par 

7,000.00 

Sept. 1, ’93 

12,000 


par 

12,000.00 

Sept. 20, ’93 

100,000 


$2,500 

97,500.00 

Oct. 20, ’93 

25,000 


625 

24,375.00 

Nov. 14, ’93 

50,000 


1,250 

48,750.00 

Nov. 18, ’93 

25,000 


625 

24,375.00 

Dec. 1, ’93 

50,000 


1,250 

48,750.00 

Dec. .19, ’93 

50,000 


1,250 

48,750.00 

Jan. 18, ’94 

50,000 


1,250 

48,750.00 

April 26, ’94 

250,000 

21,562.50 


271,562.50 

June 1, ’94 

250,000 

23,900.00 


273,900.00 

Aug. 15, ’94 

200,000 

19,780.00 


219,780.00 

Sept. 15, ’94 

300,000 

29,670.00 


329,670.00 

Oct. 15, '94 

400,000 

42,080.00 


442,080.00 


12,600,000 

$191,950.70 

$8,750 

$2,783,200.70 


From the foregoing it will be observed that of the 
bonds sold during the crisis of 1893, $150,000 sold at 
par and $350,000 sold for a discount of $8,750, the 
balance bringing a premium. 


receipts from sales of water. 


( Exclusive of $69,757.45 due from the city for the years 1891, 1892 and 1893.) 



CASH RECEIPTS. 

OPERATING EXPEN¬ 
SES AND REPAIRS. 

1887 . 

$ 97,502.71 
113,692.06 
148,106.31 
181,310.40 
214,217.95 
237,300.85 
227,500.82 

$47,000.77 

54,792.44 

51,407.17 

71,496.85 

63,993.28 

58,832.27 

63,357.32 

1888 . 

1889 . 

1890 . 

1891 . 

1892 . 

1893 . 


$1,219,631.10 

$410,880.10 












































14 


Total cash receipts. $1,219,631.10 

“ operating expenses ....$410,880.10 
Fuel, etc., on hand Dec. 31,’93 16 ,019.39 426,899,49 

Income from City Water Works $ 792,731.61 

The receipts and disbursements for the year 1894 to 
October 1, are as follows : 

Receipts.$158,695.60 

Operating Expenses and Repairs. 41,430.04 

The balance sheet of December 31, 1893, shows that 
the “Income from City Water Works” to that date 
amounted to $792,731.61. Of that sum $224,199.50 
was expended in paying interest on bonds, and $273,- 
187.13 for additional pumps and main from Palantine, 
the remainder, $295,344.98 went into construction 
account and for the extension of mains for the distribu¬ 
tion system in the city. 

The total amount received by the city for 
seven years ending December 31, 1893, 

was the sum of.$1,219,631.10 

Operating expenses and repairs $410,880.10 

Interest on bonds.224,199.50 635,079.60 

Expended in improvements, etc...$ 584,551.50 

To October 1, 1894, the sum of $2,113,157.20 had 
been expended in construction, which sum includes 
$346,384.13 expended during the seven years ending 
December 31, 1893, in extending the mains for the dis¬ 
tribution in the city. 

The total investment of the city in water plant on 
completion of present system, including original pur¬ 
chase December 31, 1886, is, as nearly as can be esti¬ 
mated, as follows : 

Amount to December 31, 1893, .$1,723,969.64 

January 1, 1894, to September 30, 1894. 1,124,051.02 

$2^848,020.66 

Estimate of amount necessary to complete 
works, excepting supply for Portland 
Heights, . 670,876.00 

Total.$3,518,896.66 

Estimated total bonded indebtedness after 

completion of works.$3,000,000.00 

















15 


The amount of cash in hands of treasurer on the 
# first of January and the first of July, of each year, was 
as follows : 


Jan. t, 1887. 

July 1, 1887. 

Jan. 1, 1888. 

July 1, 1888.■. 

Jan. 1, 1889. 

July 1, 1889. 

Jan. 1, 1890. 

July 1, 1890. 

Jan. 1, 1891, Committee owed Treasurer. 

July 1, 1891. 

Jan. 1, 1892. 

July 1,1892. 

Jan. 1, 1893. 

July 1, 1893. 

Jan. 1, 1894. 

July 1, 1894. 

The foregoing table speaks more forcibly 


; 54,212.32 
9,025.14 
22,300.50 
338.34 
1,005.24 
13,532.81 
14,191.08 
33,188.37 
10,180.45 
3,159.28 
3,093.17 
102.19 
4.74 
967.53 
42,020.67 
265,102.69 
than words 


as to the scrupulous care with which the money was 


handled. It is self-evident that bonds were sold only 


when absolutely necessary to carry on the work. The 


cash on hand during the trying times of the summer of 
1893, show to what extent the committee guarded these 
funds and fulfilled its trust. On January, 1891, the 


committee actually owed the treasurer $10,180.45. 

The provision for the redemption of bonds has been 
set out heretofore herein. At the present time there is 
no money in the sinking fund, as the time for the com¬ 
mencement of providing such fund does not begin until 
five years after the selection of the “ commission.” 

Attached to the report and marked exhibit “A” will 
be found a “ Statement of all the Receipts, Earnings and 
Disbursements by the Water Committee of the City of 
Portland, Oregon, and the Sub-Committee on Water 
Works, Operating the Works from November 25, 1885, 
when the Committee was Appointed by Act of Legisla¬ 
ture until December 31, 1893.” 

Closely connected with the finances is that of the 
unsettled question of the city paying for its water, which 

















has for a long time been a source of more or less fric¬ 
tion between the “city council” and “committee.” 
After very careful consideration of the matter we concur 
in the views of the Water Committee, setting forth the 
reason for so doing hereafter without elaborating on the 
subject. In order to understand the question a state¬ 
ment of fact is necessary. 


The monthly charges against the city are 

as follows : 

Fire Department — 

260 fire hydrants, at $5. . . 

71 cisterns, at $5 . 

11 engine houses. 

. . $1,300 00 
... 355 00 

53 25 

$1,708 25 

Police Department — 

1 police station . . . 

1 elevator . . 

. .$ 12 35 

13 00 

$25 35 

City Offices — 

Second and Oak streets . 


$15 00 

City Stables — 

Regular rates.. 


$20 25 


$1,768 85 


In addition to the above the water supplied the city 
park and to street sprinklers is charged for per following 
rates and rules. 

For water supplied by meter, except for elevators, the 
rates shall be as follows : 

For quantities up to 25,000 gallons in any one month 
at the rate of 30 cents for each 1,000 gallons. 

For the quantity so used in any one month exceeding 
5,000 gallons, and up to 50,000 gallons, at the rate of 
25 cents for each 1,000 gallons. 

For the quantity so used in any one month exceeding 
50,000 gallons, and up to 100,000 gallons, at the rate 
of 20 cents for each 1,000 gallons. 

For the quantity so used in any one month exceeding 
100,000 gallons and up to 300,000 gallons, at the rate 
of 15 cents for each 1,000 gallons. 

For the quantity so used in any one month exceed¬ 
ing 300,000 gallons, at the rate of 10 cents for each 
1000 gallons. 

From January 1, 1887, the date when the city pur¬ 
chased the water works, until December 31, 1892, the 








17 


city paid for all water used for street sprinkling and the 
park at the same meter rates as other consumers, 
amounting to about $2,500 each summer, and until 
December 31, 1890, also paid $200 per month for 
water for the fire department and other municipal pur¬ 
poses. This $200 was a continuation of the old rate 
charged by the Portland Water Company at a time when 
the city was small, when there were but few hydrants 
and the pressure not sufficient for fire protection, and 
when the water for the council chamber was paid for by 
the owner of the building. 

On December 30, 1890, the “committee” notified 
the common council that the rates for water ( other than 
for street sprinkling and city park ) would be raised from 
$200 to $2,000 per month after January 1, 1891. Dur¬ 
ing 1891 and 1892 the city paid for the water for street 
sprinkling and city park, $5,250.95, but paid nothing 
on the monthly charge of $2,000 for water for other 
purposes. 

Section 161 gives the committee power to establish 
rates for ‘ ‘ the use and consumption of water by the 
city and inhabitants thereof,” etc., etc. 

Section 162 requires it to annually, before the first 
day of January, make a written estimate of the prob¬ 
able expense of maintaining and conducting the works 
during the ensuing year, and also cost of alteration, 
improvements, etc., and therefrom “ascertain and pre¬ 
scribe as nearly as it can conveniently a water rate for 
such year as will insure a sufficient income from the 
sale of water to pay such expenses and costs together 
with one year’s interest on the bonds aforesaid then 
issued and outstanding.” 

On April 1, 1887, three months after the purchase of 
the works, the committee reduced the rates for each 
family of six persons or less, from $1.50 to 75 cents, 
and the rates for baths, water closets, hose, etc., in pro¬ 
portion. 


18 


On December 12, 1892, the committee, as required 
by law, made a written estimate for 1893, as follows : 


Deficiency at close of year 1892, estimated.$ 12,000 

Probable expense of maintaining and conducting 

works.. 65,000 

Sites for reservoirs and building high service res¬ 
ervoir. . 100,000 

Extending mains, distributing system, city. 29,000 

Interest on $700,000 bonds at 5 per cent. 35,000 

$241,000 

Receipts for water at present rates. 236,500 

Probable deficiency at end of 1893.$ 4,500 


It was also voted that instead of $2,000 per month 
the charge against the city should be, per month, 
according to rates hereinbefore named. 

It was also voted that if the city would pay according 
to the said rates, the committee would then be able to 
reduce the base rate of every family from 75 cents, the 
present rate, to 50 cents per month, which would prob¬ 
ably reduce the monthly receipts about $1,800. 

On December 27, 1892, a committee of three went 
before the common council and presented the matter to 
it, explaining the propriety and necessity of the city 
paying for water. 

On December 30, 1892, the committee gave written 
notice to the common council, the fire and police com¬ 
missioners, that the rates hereinbefore named would be 
charged to the city. 

During the year 1893 nothing was paid for water 
furnished for the fire department, city park or street 
sprinkling, and only $719.60 for the police station, 
city offices and city stables. 

During this year the police department is the only 
branch of the city government which has paid, and it 
paid $228.15, the full amount due from it. 

The books show the city owed for water on the first 
day of October, 1894, the sum of $88,169.60. 










19 


This is, in brief, a history of the controversy. Some 
principle ought to be the base for all charges for water, 
and we submit that the furnishing of this necessity to 
the actual user of the same for household purposes at 
the lowest possible rate, is the true rule. Ordinarily, 
the landlord compels the tenant to pay for the water, if 
not directly, then indirectly. The land owner must 
have water, or his property is of but little value. 
Large tracts of vacant land have been made available 
only by the extension of the city mains. Stores are 
sought where fire protection is ample. Insurance is 
saved both to tenant and landlord. Streets must be 
watered, sewers flushed, and it is put to many uses 
known to every one for the general good of the public. 
We cannot have something for nothing. This will 
probably be conceded. Therefore, how is this use to be 
paid for? It is grossly unjust, inequitable and uncon¬ 
scionable that the actual consumers, the great majority 
of whom are tenants and poor people, should pay to 
protect the great buildings and wholesale stocks of 
wealthy firms and individuals ; should pay for having 
the streets watered where the wealth and business of the 
city is concentrated, and absolutely get none but the 
incidental benefit of being more comfortable when in 
that particular locality. 

It is not only illogical, but unreasonable, to say it is 
taking money out of one pocket and putting it in 
another. Certainly, to a tenant who don’t own any 
property, it would be a saving to pay fifty cents a month 
instead of seventy-five cents, and a man owning his 
own home could much better afford to pay the very 
small increase in his tax, and get the reduction in rates, 
than to let the great bulk of the wealth of the city go 
free, as it now does. Take from the center of Stark 
street to the center of Davis, north, and from the center 
of Front to the center of First, west. In these blocks 
will be found millions of property protected, yes, 


20 


doubly protected against fire. The buildings are worth 
many millions, and are well rented. Every tenant, we 
apprehend, pays for the water he uses, and not the 
landlord ; both tenant and landlord by reason of the 
supply furnished get excellent protection against fire. 
Including elevators and income from all sources, the 
water rent paid in this district per month amounts to a 
total of $398.95. For November, 1894, there was 
paid $165.10 for water rates, and $233.85 for elevators, 
the rates for elevators being : 

Hydraulic Elevators — 

Sidewalks, each. . .$3.00 to $ 5.00 

All others, each, basis rate. 10.00 

And, in addition, ten cents per thousand gallons used 
in any one month up to one million gallons, and eight 
cents per thousand for water so used in excess of one 
million gallons. 

Should the use of water be discontinued and the ele¬ 
vators be operated by steam or electric power, the water 
pipes may remain in connection, for use in case of acci¬ 
dent, by the payment of five dollars per month in 
advance, provided that the payment, while using the 
water, shall not be less than $10 for a period of one 
month, and in addition ten cents per thousand gallons 
for the water used. 

Much protection, otherwise unnecessary, is required 
for wharves which pay but little or nothing. Is this 
right ? 

These conclusions are based, of course, upon the 
theory that the entire city will be supplied by the water 
commission and not by separate water works, and that 
the entire city will have both protection from fire and 
an adequate supply for household purposes. 

After all, this is a necessary result, in all probability, 
of having our city government cut up into sections, 
each more or less independent of the other, and each 
run without regard to the common interest. 




21 


We are informed that in almost all cities owning their 
own water works, from fifteen to forty per cent, of the 
gross earnings is paid from the general fund by a tax 
on the property protected from fire, and benefitted by 
the extension of pipes in sparsely settled portions of the 
city, so there is . nothing new or experimental in the 
proposition. 

In considering a reduction in the comparatively high 
rates now charged, the fact of the city declining to take 
any of the burden, must be borne in mind, and the 
payment of all the interest on the bonds, and the greater 
portion of the expenses incurred, solely i or the benefit 
and protection of property, has been thrown on persons 
many of whom have no direct interest in the property, 
its care or preservation, and the council’s action imposes 
each year an unnecessary burden on those who can ill 
afford to bear it, and prevents a reduction the commit¬ 
tee would have been glad and desired to make some 
time ago. The committee has filed the reports required 
by law with the city auditor and clerk, in whose custody 
they now are. 

OPERATING DEPARTMENT. 

The first meeting of the committee was held Decem¬ 
ber 8, 1885, at the office of Ladd & Tilton, in the City 
of Portland. H. W. Corbett acted as temporary chair¬ 
man. The committee organized by electing Henry 
Failing, chairman ; C. H. Lewis, treasurer, and Phillip 
C. Schuyler, clerk. A sub-committee of five and the 
chairman was appointed to prepare and present plans 
for future action. Besides Mr. Failing, this committee 
was composed of Messrs. Corbett, Gates, Ladd, Rich¬ 
ardson and Reed. 

On December 16, 1885, a resolution was adopted 
notifying all persons or corporations owning or control¬ 
ling any water source or supply, or proposing to con¬ 
struct water works, that the committee was ready to 


22 


receive propositions. On December 24, Isaac W. Smith 
was appointed engineer to appraise the value of the 
water works and other property offered for sale. Various 
propositions were received, amongst which was one from 
John Burke offering to duplicate the plant of the Port¬ 
land Water Company for $358,000. 

A. G. Cunningham offered to sell 3189 acres lying 
along the banks of Bull Run river, with riparian rights, 
for $125,000, $25,000 in cash, balance in five equal 
payments bearing interest at the rate of eight per cent, 
per annum. 

The Crystal Springs Water Company made several 
propositions both of construction and sale. 

P. F. Morey offered to sell certain riparian rights on 
Bull Run river, and to deliver 12,000,000 gallons a 
day for $600,000 ; or to deliver 25,000,000 gallons a 
day for $750,000. In case the second proposition was 
accepted he was to have the right to use all water not 
required for domestic and city purposes, and would pay 
$12,000 a year for ten years for such privilege. 

Some surveying work was done in connection with 
the Bull Run supply. It was rumored that the scheme 
was impracticable. The impression thus created the 
committee took no pains to correct, as it was deemed 
unwise to disclose the plans until they got the source 
of supply, right-of-way, etc. During 1886 the consti¬ 
tutionality of the Act creating the committee was 
tested in the suit of David et al. v. The Committee , 
and the Act sustained. On December 8, 1886, the 
Portland Water Company sold its entire plant to the 
city for $461,676, and on January 1, 1887, the com¬ 
mittee took possession. The property acquired by the 
city by this purchase, was as follows : 

The Palatine pumping station, five miles above the 
city on the White House road, including two five-mil¬ 
lion gallons Worthington pumps and ten acres of land 
adjoining. 


23 


The high service pumping station at the corner of 
Seventh and Lincoln streets, including one small half¬ 
million gallon pump. 

The old round house station at the foot of Lincoln 
street, including one three-million gallon pump ; a one 
million gallon pump, and a half-acre of land along the 
river front. These pumps have not been used for many 
years, and have, with all other property, been removed 
from the pumping station. 

A low service reservoir, capacity two million gallons ; 
occupying the block bounded by Lincoln, Grant, Sixth 
and Seventh streets, from which the water is pumped 
for the high service system. 

A high service reservoir, capacity about 250,000 gal¬ 
lons, occupying a block of land bounded by Eighth 
and Clifton streets and the hills back of Eighth and 
Clifton. This reservoir is not at a sufficient height to 
afford the required pressure, and has not been used dur¬ 
ing the past two or three years. 

A reservoir at about ninety feet above the base of the 
city grades at the northwest corner of Fourth and 
Market streets, occupying a quarter of a block of land. 
This is too low to afford sufficient pressure, and is now 
used for a store house, stables and residence of 
employees. 

Water supply from Caruthers and Balch creeks. This 
is no longer used as the supply has greatly diminished, 
and the water is not suitable for consumption. 

Distribution pipes and mains, 27.413 miles of the 
dimensions stated in the table hereinafter set out. 

The committee, after the purchase of the works, did 
not relax its effort to seek another and purer supply, 
although what they did was done very quietly. We 
think we are safe in saying the Bull Run project was the 
only proposition to which really serious thought was 
given. At any rate a gravity system seems to have been 
the generally accepted one, no matter where the supply 


24 


might come from. Considerable money was expended in 
purchasing rights-of-way, in engineering expenses, etc. 

On May 13, 1887, Isaac W. Smith was appointed 
engineer and superintendent, at a salary of $250 per 
month. On August 3, 1887, the committee decided 
to lay mains in every graded street. On November 2, 
1887, the Cunnigham rights were purchased for $21,- 
181.19. This purchase, with the creation of the tim¬ 
ber reservation by the United States, and previously 
acquired rights, gave the city an ideal water supply. 

The receipts the first year were $97,502.71. In 
1892 the receipts were $237,300.85, and in 1893, 
$227,500.82. 

On April 1, 1887, a reduction in rates of about fifty 
per cent, was made to families. Other charges in con¬ 
nection with meter charges and rates looking to the 
more economical use of water were made, but no other 
general reduction has been effected. 

In order to get a fair idea of what has been done in 
the operating department, a few comparative tables are 
set out : 

tabue 1. 

TOTAL MILES PIPE LAID TO DECEMBER 31, 1893. 


DIAMETER 

INCHES. 

BY 

PORTLAND 
WATER CO. 
TO DEC. 31, 
1886. 

BY WATER 
COMMITTEE 
TO DEC. 31, 
1893. 

CAST 

IRON. 

WROUGHT 

IRON. 

TOTAL. 

30 inches 
24 “ 

4.150 

.706 

5.904 

1.980 

4.150 

4.630 

4.150 

6.610 

20 

< < 

.270 

2.450 

2.720 


2.720 

18 

16 

< < 

< < 

.060 

.654 

.866 

1.520 

.060 

.060 

1.520 

14 

12 

< < 

a 

1.793 

.699 

2.487 

1.793 

3.186 


1.793 

3.186 

10 

< < 

.211 

6.798 

7.009 


7.009 

8 

6 

< < 

< c 

9.370 

2.349 

16.962 

2.349 

26.332 


2.349 

26.332 

4 

< < 

9.500 

6.866 

16.366 


16.366 

3 

< < 


.246 

.246 


.246 



: 27.413 

44.928 

63.501 

8.840 

72.341 




















25 


In addition to the above mains and pipes laid, the 
committee erected one twelve-million gallon pump at 
the Palatine pumping station. 

Two pumps, with a combined capacity of 4,000,000 
gallons a day, erected at the high service pumping sta¬ 
tion at the corner of Seventh and Lincoln streets. These 
are all high duty Holly pumps, adapted to pumping 
into the reservoirs or directly into the mains, and using 
not more than sixty per cent, of the fuel required for the 
old Worthington low duty pumps. 

The cost of the original plant, and of pumps, force 
mains and distribution pipes purchased, laid and erected 
since is as follows : 

Paid Portland Water Company. ... $ 461,676 

Additional pumps and force mains 

from Palatine..$273,187 

Distribution pipes within the city... 346,384 $ 619,571 

$1,081,247 

The additional pumps were necessary to meet the 
rapidly increasing demand for water for domestic and 
fire services, and have also been designed as a necessary 
part of the Bull Run gravity system, to be used in case 
it may be necessary to shut off the gravity supply in 
order to repair the mains. 

Of the amount expended as above set out $584,551 
has been derived from the sales of water, and of this at 
least $140,000 has. been expended on large pipes 
designed to give a sufficient fire pressure, but from 
which little or no revenue is derived, a fact which again 
emphasizes the righteousness of the city at large paying 
a portion of the water charges. 

A decided reduction in the cost of operating has been 
made. 

For the year 1887 the cost of fuel per million 

gallons pumped at Palatine was.$12.28 

For the year 1893. 5.04 

Saving per million gallons.$ 7.24 








26 


The saving'on 3,641,000,000 gallons pumped during 
the year 1893 at $7.24 was $26,361. This reduction 
is due to the use of high duty pumps, and diminished 
resistance by the use of large mains, and the substitu¬ 
tion of wood for coal as fuel. Excluding interest on 
bonds and fuel, the cost per million gallons for operat¬ 
ing and repairs was $15.92 in 1887 and $13.64 in 1892. 

Between 1887 and 1892 the following increases are 


noted : 


Water pumped. 80 per cent. 

Gross earnings. '.100 per cent. 

Pipe mileage.135 per cent. 

Operating expenses, excluding fuel. 23 per cent. 


The pay roll of the office and cost of rent, fuel, light 
and stationery during the first nine months of 1894 has 


averaged $542 per month. This does not include the 
pay of those employed in inspection, turning water off 
and on, repairs to mains, or other work outside of office. 

The percentage, which all expenses of operating bear 
to the receipts, is as follows : 


Gross earnings in 1893.$249,228.82 

Deduct balance due from city 1893. 21, 728.00 

Gross receipts.$227,500.82 

Total operating expenses and cost of repairs.$ 63,357.32 


Percentage, 27.8. 


$164,143.50 


TABIyE B 

Shows the annual consumption of water and for the aver¬ 
age in August in each year, from 1886 to 1893 inclusive : 

GALLONS PUMPED AT EOW SERVICE STATION AT PALATINE. 


YEAR. 

PER ANNUM. 

PER DIEM DURING YEAR. 

AVERAGE IN 

AVERAGE. 

MAXIMUM. 

AUGUST. 

1886 

1887 

1888 

1889 

1890 

1891 

1892 

1893 

1,431,000,000 

1,728,000,000 

2,153,000,000 

2,576,000,000 

3,431,000,000 

3,663,000,000 

3,116,000,000 

3,641,000,000 

3,920,000 

4,716,000 

5,900,000 

7,056,000 

9,415,000 

10,031,000 

8,537,000 

9,900,000 

6,250,000 

8,579,000 

9,706,000 

11,200,000 

13,500,000 

14,800,000 

17,000,000 

4,670,000 

5,200,000 

6,730,000 

8,390,000 

10,663,000 

12,000,000 

10,652,000 

10,798,000 






















27 


CAPACITY OP PUMPS. 

The rate of supply during fires and during the sum¬ 
mer months exceeds by at least fifty per cent, the aver¬ 
age rate of consumption throughout the year, and 
duplicate pumps are necessary for use in case it may be 
necessary to shut down one of the pumps for repairs. 
Therefore, when there are no large storage reservoirs, 
the pumps must be designed for a much greater capacity 
than would be necessary for the average daily consump¬ 
tion during the year. 

The efficiency of the pumps to produce the requisite 
pressure is reduced by the resistance due to friction in 
forcing the water through small pipes. To secure a 
sufficient fire pressure, the committee has, as above 
stated, expended at least $140,000 in large mains. 

Under these conditions the capacity of the pumps of 
the Portland Water Company may be placed at 5,000,- 
000 gallons a day, and the maximum capacity for a 
limited time of 10,000,000 gallons. The pipes, how¬ 
ever, were not of a sufficient size for over 4,000,000' 
gallons. 

With the present plant of pumps and pipes the capac¬ 
ity is sufficient for an average daily supply of 12,000,- 
000 gallons, which may be increased for a limited 
period to 18,000,000 gallons. 

RATE OF CONSUMPTION. 

In 1886 the daily average consumption was 3,921,- 
000 gallons for the year, and 4,670,000 gallons for the 
month of August. 

In 1893 it was 9,900,000 gallons per diem for the 
year, and 10,798,000 gallons per diem for the month of 
August. 

The maximum during that month was 17,000,000 
gallons, or about 340 gallons to the head of population. 


28 


We are informed that over one-half of this amount was 
wasted ; and even after a supply is brought in from 
Bull Run, this excessive waste must be checked by the 
use of meters. 

In this connection we would say that on a basis of 
thirty gallons per capita per day, the present pipe line 
will furnish 800,000 people. In a report on the water 
works of Worcester, Mass., operated under a gravity 
system, and where meters are used, the report shows 
that in 1892, Worcester had a population of 88,000, 
and consumed that year 960,000,000 gallons of water, 
or at the rate of 29ff gallons per capita per day. 
They had in use 9,522 meters which accounts for the 
small consumption. The wastage now going on cannot 
very well be stopped so long as river water is used, as 
the meters will not operate well. The new supply 
being free from sediment will avoid this trouble, and 
meters can be used to advantage and check the excessive 
waste. 


COST OF PUMPING PFR MIUFION GAUFONS. 

We have already in this report set out the reduction 
made in the cost of pumping at Palatine by change of 
fuel between the beginning of 1887 and 1893. We 
now submit a comparative table showing further details 
made up for the years 1887 and 1892. The statement 
does not include the cost of pumping at the high ser¬ 
vice station : 

Repairs, wages, oil, waste, etc. . 1887, $ 2.72; 1892, $3.21 
Fuel. “ 12.28; “ 5.26 

$15.00 $8.47 

The increase of expense for wages, repairs, etc., was 

due to the increased number of pumps to be kept in 

repair, and to extraordinary cost of repairs during the 
year 1892. 





29 


ESTIMATED NUMBER OF CONSUMERS. 

The number of water consumers can be estimated 


only by the number of taps from which water is sup¬ 
plied : 

January 1, 1887, estimated number of taps. 5,000 

Taps put in to January 1, 1894. 3,909 

8,909 

Estimated seven persons to the tap : 

Number of consumers on January 1, 1887, was. . . 35,000 
Number of consumers on January 1, 1894, was. . . .62,363 


This estimate may be too small, but it is valuable for 
the purposes of comparison. 

Gross earnings, operating expenses excluding interest 
on bonds and net earnings from 1887 to 1893, inclusive, 
and including $69,757 charged to the city : 


YEAR. 

GROSS 

EARNINGS. 

OPERATING 

EXPENSES. 

net 

EARNINGS. 

1887. 

$ 97,503 

$47,001 

$ 50,502 

1888. 

113,692 

54,792 

58,900 

1889. 

148,106 

51,407 

96,699 

1890. 

181,310 

71,497 

109,813 

1891. 

238,218 

63,993 

174,225 

1892. 

261,330 

58,832 

202,498 

1893.. 

249,229 

63,358 

185,871 


$1,289,388 

$410,880 

$878,5u8 


It will be observed that the increase in earnings from 
1887 to 1893, was 155.6 per cent., while the increase in 
operating expenses in the same time was 34 per cent. 
When the cost of increased pipe mileage, increased water 
consumption, new pumps, boilers and other machinery is 
considered, the rate of expense to receipts speaks well 
for the operating department. 

There should be, however, some decrease in the 
expenses, the benefit of which should, and will at once 
be given the consumers. The saving will be in the 
cost of pumping, less the amount which will be required 
to keep the pumps in serviceable condition for use in. 






















30 


case of accident to the Bull Run pipe line, and the cost 
of repairs and supervision of the Bull Run water works. 
At the present rate of consumption (ten million gal¬ 
lons per day ) the saving would be about $30,000 per 
annum on the west side of the river, to which is to be 
added the cost of pumping on the east side. 

When the consumption will have reached 25,000,- 
000 gallons a day, the estimated capacity of the Bull 
Run pipes, the saving over and above the cost of pump¬ 
ing that amount would be about $75,000 per annum. 
The supplying of the east side may make some changes 
from the above figures. 

GENERAL DESCRIPTION OF WORKS FOR 
A GRAVITY SUPPI/Y FROM BUTE RUN. 

Bull Run is a mountain stream heading in a lake, 
fed by springs, about ten miles distant from Mt. Hood. 
Around this lake there is a high range of mountains 
between which and Mt. Hood there is a depression from 
which flow the headwaters of Hood and Sandy rivers. 
On account of this depression the snow water from Mt. 
Hood can flow into the headwaters of Bull Run only 
through springs and underground channels, and the 
stream flowing through rocky canyons with many falls 
and cascades is always clear even during the greatest 
floods. Between the head lake and the point at which 
the water is taken from the stream for the city supply, 
the country is rocky, mountainous and entirely unfit for 
cultivation or settlement, and in order to protect the 
waters from contamination, and to prevent the diminu¬ 
tion of the discharge by the destruction of the forests, 
a tract of 200 square miles was reserved from settlement 
by proclamation of the President. We are informed, 
however, that within a year or two after the proclama- 
ation a township of land was surveyed for the benefit of 
six persons who alleged they had taken homestead 


31 


claims prior to the date of the reservation, and there is 
danger that tracts may be taken up for the timber, and 
thus the intention in reserving this land be defeated and 
the country denuded of its timber. The head works at 
which the water is diverted from the stream, are about 
35 miles from the lake at the head of Bull Run, 24 
miles from the reservoir on Mt. Tabor and 30 miles 
from the city park reservoirs, and are 716 feet above 
low water on the Willamette. The minimum discharge 
of the stream at the head works is about 60,000,000 
gallons a day. Of this, 23,000,000 gallons will be 
delivered for the city supply now, and 30,000,000 gal¬ 
lons additional when needed. The head works, bridges, 
rock cuts and reservoirs have been designed so that an 
additional pipe may be laid without interrupting the 
supply. From the head works the water is conducted 
by means of a steel pipe from 35 to 42 inches in dia¬ 
meter, and 24 miles in length to the Mt. Tabor reser¬ 
voir, and is carried thence through a cast-iron pipe 32 
inches in diameter and six miles long to the city park 
reservoir, passing under the Willamette river with ball 
and socket joints by means of a cast-iron pipe 28 inches 
in diameter. The water falling from the high to the low 
service reservoir in the city park will be utilized to drive 
hydraulic pumps, which will supply Portland Heights 
and other elevated portions of the city. The water fall¬ 
ing from the Mt. Tabor reservoir to the low service res¬ 
ervoir at the corner of Division and West avenues, could 
also be used to furnish power for pumping or electric 
lights. The power would be sufficient to furnish 100 
arc lights at the city park and 80 at Mt. Tabor. 

CAPACITY OF RESERVOIRS. 

East Portland, No. 1, high service, est.. .14,000,000 gals. 
East Portland, No. 2, low service, est. . .20,500,000 gals. 
West Portland, No. 3, high service, est....15,000,000 gals. 
West Portland, No. 4, low service, est... . 18,000,000 gals. 

67,500,000 gals. 


« 



32 


COST OF WORKS. 

Including hydraulic pumps and pipes for Port¬ 
land Heights reservoir, and distribution pipes 
on the east and west side of river, bridges, 
steel and cast-iron pipe from headworks to 
city park, submerged pipes under the river, 
real estate, rights of way, telephone lines, 
legal and incidental expenses, the total ex¬ 


pended to September 30, 1894, was .$1,636,105 

Estimated cost of completion.. 770,895 


$2,407,000 

TIME OF COMPLETION. 

The exact date when water will run into reservoirs 
and the mains is somewhat indefinite, but probably by 
January 1, 1895, the city will be using Bull Run 
water. 

HOW THE WORKS WERE CONSTRUCTED 
AND SAFE GUARDS AS TO INSPEC¬ 
TION OF CONTRACT WORK. 

Specifications were made describing the works and 
time and method of payment, and were furnished to all 
desiring to bid. Bids were then asked for, after duly 
advertising for the same, and were opened in the pres¬ 
ence of the bidders at the day, hour and place specified. 
Each bidder was required to endorse and deliver a certi¬ 
fied check for a certain per cent, of his bid, as security 
for the faithful execution of the contract, and to furnish 
the required bonds in case the contract was awarded 
him. Ten per cent, was usually deducted from the 
monthly estimates as further security that the work 
would be completed according to contract. On the 
contracts for the steel, cast-iron and submerged pipes, 
the ten per cent, thus reserved is retained until six 
months after completion, during which time the con¬ 
tractors are required to keep the pipes in repair and 
turn them over in good condition. 


* 





33 


The work is subject continually to a rigid inspection 
in the shops and field, reports being made by inspectors 
each month. The work, however, is not accepted until 
the expiration of a stipulated time after completion. 
The cement, gravel, stone, etc., is delivered at the res- 
eivoirs by wagon, the contents of each load being 
measured, and a receipt showing the quantity given the 
teamster ; the stubs of the receipts are turned over to a 
tally clerk, who enters them each day in a record book, 
from which, at the end of the month, an estimate is 
made by the assistant engineer, and by him forwarded 
to the chief engineer. We attach hereto abstract of 
proposals marked exhibit “ B,” which shows the vari¬ 
ous bids on different portions of the work. 

We also hand with this report a copy of the specifica¬ 
tions marked exhibit “ C.” 

Mr. J. W. Cook, of this committee, made a personal 
examination of the entire work and of the materials 
used. His report is highly commendatory of the work 
done in every particular. It must be borne in mind 
that none of your committee claim to be experts, but a 
man of judgment should be able to tell whether the 
work was being done carefully, and the kind of material 
which was going into its construction. Mr. Cook 
retained specimens of various kinds of material to be 
shown if required. We attach hereto memorandum of 
report made by Mr. Cook, marked exhibit “4.” 

In presenting this report we are constantly impressed 
with a sense of a lack of technical knowledge to prepare 
a really valuable report, the only merit we claim being 
an honest desire to present the facts. It must be borne 
in mind that in passing upon this work we are going 
over that to which men of acknowledged ability and 
integrity have given years of thought, study and labor. 
It would be a depth of egotism which none of us have 
yet sounded, to place our immature opinion against 
carefully matured judgment on matters of policy and 


3 


34 


carefully digested and prepared plans. A report of this 
nature must, therefore, necessarily deal with facts, and 
each person form their own conclusions as to the wisdom 
of the acts of the committee. The committee after due 
deliberation adopted and followed an acceptable plan. 
Millions of dollars have been spent, a great public work 
carried to completion ; no scandal exists ; no charges 
of mal-administration are made ; not even a hint of pecu¬ 
lation is suggested. Only once has it been charged 
that politics has entered into anything the Water Com¬ 
mittee did, and there would have been no ground for 
that charge had every member of the committee been 
as scrupulous as the majority in regarding their trust 
as one for all the people, without regard to their politi¬ 
cal faith, and it may be stated here that the charge, as 
far as the committee was concerened, was unfounded. 
The work of the committee is practically done. It 
must be judged by its works. The City of Portland 
will have a supply of water which for purity is proba¬ 
bly unexcelled anywhere in the world. . How much 
this will count for the future health and happiness of 
its citizens cannot be measured. 

Without in any way retracting or modifying the opin¬ 
ion we have heretofore expressed as to the advisability 
of “commissions,” yet in this particular instance we 
are free to say the only practical way of handling the 
water question was through a commission. It is per¬ 
fectly evident that when a plan was once adopted it 
would have to be put through without constant changes, 
certainty was necessary. It was also infinitely better 
that (if honest and capable) the work should be carried 
on by men who were familiar with all its details. Its 
offices, functions and plans ought not to be the subject 
of caprice or whim. These results could only be 
obtained through a commission. However, the greatest 
praise which can be given the Water Committee is its 
.severest condemnation, for it is unquestionably the 


35 


father of all commissions which have been created 
since, to divide the government of our city into as many 
independent heads as there are departments. 

Before closing this portion of our report, we desire 
to publicly acknowledge the courteous treatment this 
committee has received at the hands of the chief engi¬ 
neer, clerk and other officials connected with the com¬ 
mittee. 

While we are called upon to report on the work of the 
Water Committee only, this report would be far from 
complete without reference to the systems on the east 
side of the river. 

We will first report generally on the water systems 
of that part of the city formerly comprising East Port¬ 
land. 

On February 9, 1887, an Act was approved amending 
the Acts incorporating the City of East Portland, which 
gave the common council power and authority to provide 
the city with good and wholesome water. By an Act 
filed in the office of the Secretary of State, February 18, 
1891, the City of East Portland was incorporated and 
the same Act repealed the other Acts incorporating the 
said city. Under this Act, by Section 121, the City of 
East Portland was empowered to construct or purchase, 
keep, operate and maintain water works and electric 
light works of a character and capacity sufficient to fur¬ 
nish the city and inhabitants thereof with an abundance 
of good and wholesome water and light for all uses and 
purposes necessary, etc. The power and authority given 
the city to construct and purchase water and electric 
light works and dispose of the bonds therefor, were to 
be exercised by the common council, but the power and 
authority given to maintain, operate and continue the 
construction of such works were to be exercised by three 
bona fide resident taxpayers of the City of East Portland, 
to be elected by the common council and to be styled col¬ 
lectively “The Water and Eight Commission.” This was 


36 


to commence when the purchase and construction of the 
water works or plant as provided for was completed, 
and was to expire on the first day of July, 1892, and it 
was then provided that at the said election held on the 
third Monday in June, 1892, there should be elected 
three water and light commissioners possessing the 
qualifications provided for, who should be elected by 
the qualified voters of the city, and whose terms of 
office were to commence the first Monday of July, 1892, 
expiring as follows : The first Monday in July, 1893, 
one first Monday in July, 1894, one first Monday in 
July, 1895. The respective terms were to be decided 
by lot. Thereafter one commissioner was to be elected 
each year for a term of three years. Other provisions 
relate to the organization of the commission, election 
by the council where a vacancy occurs, meetings, etc. 

Section 130 provided for the issuance by the common 
council of bonds of the city running 30 years at six 
per cent., interest payable semi-annually in gold coin of 
the United States, the whole amount issued never to 
exceed the sum of $250,000 water bonds, and $50,000 
light bonds. As soon as the funds were realized the 
common council were authorized to acquire a system of 
water works and light works of sufficient size and capa¬ 
city to supply the demands of the city, etc., and there- 
upon to]turn it over to the water and light commission 
who would then operate it. The other provisions were 
in effect the same as those of the law governing the 
Water Commission of Portland. The salary of the three 
commissioners were to be $150 a year, and a $15 city 
tax was prescribed as a minimum amount any one 
should pay to be eligible. 

After the passage of the Act authorizing the issuance 
of the $250,000 in bonds, East Portland purchased from 
the East Side d Water Company its plant, in pursuance of 
a tacit agreement to this effect which had been entered 
into between the council and the gentlemen who formed 


the company. The plant which had been acquired by 
the company prior to the purchase by Hast Portland, 
consisted of a tract of 3yV acres on which they drove 
wells, erected buildings, pumps and machinery. They 
also laid about 12 miles of mains, and commenced 
to furnish water.at, as we are informed, the same base 
rate as now charged. 

On May 1, 1891, the bonds were issued and sold in 
the full amount authorized, to wit, $250,000. They 
run for 30 years, draw six per cent., interest payable 
semi-annually, and were sold for par. 

The original purchase price was 

the sum of. $95,108.90 

Being a cash payment of.$49,684.50 

Obligations assumed.. 45,424.40 $95,108.90 

Shortly after this trade was consummated the Consoli¬ 
dation Act was passed, the City of Portland assuming 
the obligation and taking over the plant and the funds 
on hand. Since then the city, through a council com¬ 
mittee, has operated the plant, and expended the pro¬ 
ceeds, of the bonds over and above the purchase price of 
the plant in extending the system to its present propor¬ 
tions. This committee is now composed of the follow¬ 
ing gentlemen : J. P. Menefee, chairman ; D. W. 
Burnside and Thomas J. Jones. They hold two meet¬ 
ings a month, and exercise a general supervision over 
the entire work. Since the original purchase about 25 
miles of mains have been purchased and laid, a stand 
pipe erected and two lots purchased. The plant con¬ 
sists at this date of pumping station, about 3 T V acres 
of ground, two pumps, seven wells, four boilers, steam 
condensers, etc., two lots 50x100 each in Irvington on 
which the stand pipe is erected, about 40 miles of 
mains varying in size from three to sixteen inches, the 
predominating size being four, six and eight inches. A 
large extent of territory is traversed; the northern 
boundary is supposed to be the old dividing line 






38 


between East Portland and Albina, a main runs, how¬ 
ever, two-thirds of a mile north of that line; east the mains 
run in Irvington and Holladay’s addition to Twenty- 
eighth street, and west to the river ; Sunnyside is well 
covered and is probably the farthest eastern point; the 
mains run south to the city limits, and also to Waverly 
and East Portland heights. The territory comprised 
between Albina on the north, the old city limits before 
consolidation on the south, the river on the west, and 
the eastern boundary of Sunnyside on the east is fairly 
well covered. The total cost of the plant as it now 
stands is $252,520.95. 


CONSTRUCTION FUND EAST SIDE WATER 
WORKS. 

Amount expended by East Portland before 

consolidation.$129,962.67 

City of Portland since consolidation. 122,558.28 

Total cost.$252,520.95 

RECEIPTS AND DISBURSEMENTS BY YEARS 

Receipts, 1891.$ 4,424.01 

“ 1892. 15,834.48 

“ 1893. 20,660.79 

“ 1894, to Oct. 1, 1894. 15,695,85 $56,615.13 

DISBURSEMENTS. 

Operating expenses..$36,931.83 

Construction fund. 2,026.51 

General fund. 15,000.00 

Balance on hand Oct. 1, 1894 2,656.79 $56,615.13 

COMPARATIVE TABEE OP RECEIPTS AND 
COST OP OPERATION. 

Receipts. Disbursements. 

Oct. 1, 1891, to Oct. 1, 1892.$14,815.58 $11,198.94 

Oct. 1, 1892, to Oct. 1, 1893 19,351.92 11,997.58 

Oct. 1, 1893, to Oct. 1, 1894 20,331.4 0 11,982.29 

$54,298.90 $35,178.81 
















39 


The annual interest charge is $15,000, which, for the 
three years, would amount to $45,000, from which it 
would appear the system is not earning interest on the 
bonds, but is running behind. In considering the 
earnings it must be borne in mind that the country 
traversed by the mains is not thickly settled, and an 
opposition company, the East Portland Water Company, 
is in the field covering much of the same thickly set¬ 
tled territory, and has, we are informed, nearly as many 
consumers as the city works. 

The expenses of running the plant last month were 
$816, made up of the following items : 


Three engineers, eight hour shifts.$240 

Eighty cords of wood at $2.50. 200 

Secretary, salary..100 

Inspector. 60 

Superintendent of mains. 75 

Incidentals. 141 $816 


The receipts for the same month were $1,761. The 
receipts for the summer months are increased by charges 
for irrigation. The rates are the same as charged by 
the Water Committee. The first year they had about 
800 taps and upwards. Now they have about 1,400 
and upwards. 

Estimating seven persons to a tap, would make : 

Consumers first year.5,600 

Consumers now .9,800 

The number of consumers is constantly increasing. 

We could get no data as to the amount of water 
pumped, as no meter is connected with the pumps. 

There is one large and one small pump. The former 
has a capacity of 3,000,000 gallons per day, and the 
small one 1,250,000. The supply is small, the entire 
system being supplied with the small pump, and it does 
not run to its full capacity. Two pumps are kept on 
hand in order to have a reserve in case of breakage, or 
the one in use getting out of order. The supply of 
water is insufficient for the demand, and the city main is 











40 


connected with the Albina company’s main, by the aid 
of which a pressure of 100 pounds is maintained for 
fire purposes and to keep lip supply. The city pays 
3 y 2 cents per thousand gallons to Albina company, and 
this year the city has paid for water thus far, $780.75. 
Mr. E. J. Gray is superintendent of the mains, etc. 
There is no sinking fund provided for as yet. 

The committee in charge of the works for the coun¬ 
cil are economizing in many directions. When they 
assumed control, July 1, 1894, the salary list of regu¬ 
lar employees was $575 per month ; since August 1, a 
reduction on this account of $100 per month has been 
effected. By making a change in the machinery which 
cost $53, eighty cords of wood are now burned per 
month, where formerly 100 to 110 cords were required. 

We are under obligations to Mr. Roscoe R. Morrill, 
secretary of the east side plant, and to Mr. Gambell, 
city auditor, for data furnished as well as other assist¬ 
ance rendered. 

AEBINA. 

Under date of February 20, 1889, there was filed in 
the office of the Secretary of State, an amended charter of 
the City of Albina, under the provisions of which bonds 
to the amount of $40,000 might be issued by the com¬ 
mon council for the purpose of establishing and main¬ 
taining water works bearing six per cent, interest, pay¬ 
able semi-annually. 

Nothing was done under this charter. 

Under an Act filed in the office of the Secretary of 
State, February, 20, 1891, the common council of the 
City of Albina were given the power to construct or 
purchase, etc., water works of a character and capacity 
sufficient to furnish the city and inhabitants thereof 
with an abundance of wholesome water, and were 
authorized to acquire by purchase or otherwise, such 
real and personal property within and without the limits 



STATEMENT 

Of all the Earnings, Receipts and Disbursements by the Water Committee of the City of Portland, Oregon, and the Sub-Committee on Water Works, operating the works, from 

November 25, 1885, when the Committee was appointed by Act of the Legislature, until December 31, 1897. 






























































































































































































































































































































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41 


of the city as might be necessary and convenient, and 
were authorized also to issue bonds to the extent of 
$40,000, to be signed by the mayor and countersigned 
by the police judge. The time of the payment of the 
bonds was not fixed. The council was given the author¬ 
ity to set the time of the payment of each bond, said 
bonds to bear interest at the rate of five per cent., paya 
ble semi-annually. 

The City of Albina did not issue the bonds provided 
for, but its inhabitants are supplied by the Albina Eight 
and Water Company, a private corporation. Its plant 
consists of four twelve-inch artesian wells situated near 
the river. It has three pumps with a total capacity of 
four million gallons per day. The present consumption 
is about one million gallons per day, which is increased 
in the summer time to about one and one-half million 
gallons per day. There are about 30 miles of mains 
and 1,600 taps, making number of consumers, on ratio 
used in this report, 11,200. The same base rate is 
charged as on the west side. The city is charged $5 
per month for each hydrant, and pays it. The cost of 
operation, earnings, etc., we are unable to get, but under¬ 
stand it is well managed and is a profitable enterprise. 

This covers, in a general way, the present mode of sup¬ 
ply of that part of the territory of the consolidated city, 
formerly known as Portland, East Portland and Albina. 

In conclusion, we would say that it is very difficult to 
give in a report any adequate conception of the work 
done, the difficulties encountered and the obstacles sur¬ 
mounted. 

In a work of this kind, much of which was neces¬ 
sarily done by contract, which, in some instances, was 
sublet and re-sublet, the utmost watchfulness and care 
was required. Bills for extra work had to be closely 
scanned. The inspection had to be inspection or the 
city suffer for years. The appointments had to be care¬ 
fully made, even when recommended, in order to keep 


42 


the work out of politics. That this was accomplished 
as well as it has been, is a matter of congratulation, 
and this result has only been obtained by the unselfish 
and dignified stand taken by the great majority of the 
committee. The exact purpose of changing some of 
the committee by the legislature, is not clear. The 
gentlemen displaced were valuable members who had 
been painstaking and earnest in their work. This is 
not intended as a reflection on the new members, but 
there has always been a well settled opinion that they 
were removed by the legislature on political grounds. 

In approving the policy of having a commission to da 
the work, we do not wish to be understood as approving 
the policy of creating any self-perpetuating body. We 
can conceive of no principle carrying with it greater 
danger than this theory. If the citv should have a cor¬ 
rupt body thus created, no limit could be set to the 
damage which might be done. 

As a result of our investigation we would suggest 
that at least a majority of the present committee be 
retained to complete the work, and would further rec¬ 
ommend that no salaries or other compensation be paid 
the commissioners. 

It would be unjust to single out any particular mem¬ 
ber of the committee for either special approbation or 
condemnation, but we feel we are violating none of the 
proprieties when we say it is a matter of regret that 
Mr. W. S. Ladd did not live to see the great work 
accomplished, to which he gave so much of his time, 
thought and labor. As an active worker on the com¬ 
mittee his services will always be appreciated by his 
associates and the public. 

In finally closing this report we would say that we 
have approached the subject in a spirit of fairness and 
justness to all concerned, and presume it will be con¬ 
ceded that in a work of this magnitude, things have 
been done which, in the light of experience gained by 


43 


actual work, would not have been done ; mistakes may 
have been, and probably were, made, but taking into 
consideration the amount of work done, we believe it 
would be difficult to find any public or private enter¬ 
prise which will show a cleaner administration and give 
less opportunity for adverse criticism than that done by 
this committee. We have heretofore patiently and care¬ 
fully examined all the particular matters to which our 
attention was directed, and have reported on the same 
from time to time. We do not feel called upon to 
express any opinion as to the merits of the Bull Run 
plan as against the river, as this question, so far as the 
public is concerned, is settled. We admit the long 
delay in filing this report, but if you will consider the 
labor involved in preparing a report of this character so 
as to make it intelligible, and the further fact that the 
work was not completed, we feel that we are not cen¬ 
surable. Respectfully submitted, 

[Signed,] J. N. Teal, Chairman. 

[Signed,] J. W. Cook. 

Dated, December 1, 1894. 


EXHIBIT A. 

Statement of all the receipts, earnings and disbursements by the Water Committee of the City of Portland, Oregon, and 
the sub-committee on water works, operating the works, from November 25, 1885, when the committee was appointed by act 


44 


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Add fuel, material, tools, etc., in hands of operating department on December 31, 1893. 16,019.39 $2,377.941.11 

Balance in hands of the treasurer of the Water Committee of the City of Portland, Oregon, December 31, 1893. $42,020.67 

♦After deducting from $54,958.20, heretofore standing to the credit of premium on bonds, $7,500 being 2)4 per cent, discount on $300,000 
of the bonds sold in 1893. **After deducting from $46,250, deposited with city treasurer for paying interest for 1893, $5,800.50 being accrued 
interest on $450,000 bonds sold in 1893. 



















































































































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